The trading day effectively finished on the weak USA factory data/Strong Services PMI(ISM) number. I’m going to look at some PDAC data then start the ZGR.
Romney Has Mo for Super-Tuesday (and vote rigging machine)
USA Factory Orders Fall , PMI Services Rises
New orders for U.S. factory goods dropped in January by the most in over a year as businesses cut orders, but the pace of growth in the U.S. services sector picked up unexpectedly in February.
The Commerce Department said on Monday orders for manufactured goods fell 1 percent, a less steep decline than the 1.5 percent drop expected by private forecasters in a Reuters poll. Still, it was the biggest decline since October 2010.
Many economists think the expiration of some tax breaks on capital spending at the end of 2011 led businesses to bring forward investments.
Indeed, December’s gain was revised up to 1.4 percent from a previously reported 1.1 percent.
Orders for nondefense capital goods, excluding aircraft — a closely watched category because it is taken as a sign of businesses’ future spending plans — fell 3.9 percent in January.
Shipments for this category declined 3 percent.
Meanwhile, the pace of growth in the U.S. services sector increased in February to its highest level in a year, according to an industry report released on Monday.
The Institute for Supply Management said its services index rose to 57.3 last month from 56.8 in January. The reading topped economists’ forecasts for 56.1, according to a Reuters survey.
It was the highest level since February of last year. A reading above 50 indicates expansion in the sector.
Oil Comes off
Oil fell for a second day after China cut its target for economic growth to the lowest level since 2004.
Prices fell as much as 1.1 percent as China’s Premier Wen Jiabao said in a state-of-the-nation speech in Beijing that his country will aim for economic growth of 7.5 percent this year, down from an 8 percent goal in place since 2005.
Crude oil for April delivery fell 48 cents, or 0.5 percent, to $106.22 a barrel at 10:26 a.m. on the New York Mercantile Exchange. Prices are up 1.7 percent in the past year.
Brent oil for April settlement decreased 44 cents, or 0.4 percent, to $123.21 a barrel on the London-based ICE Futures Europe exchange in London.
Former OMB David Stockman Sees Dire USE Circumstances
USA Stocks Decline at Opening Waiting USE Data Release
U.S. stocks declined, following a three-week advance for the Standard & Poor’s 500 Index, as China reduced its economic growth target and a measure of euro-area services output shrank more than estimated in February.
EBay Inc., Joy Global Inc. (JOY) and Advanced Micro Devices Inc. (AMD) dropped more than 1.1 percent to pace losses among the biggest companies. Zynga Inc. (ZNGA), the online-game company that sold shares to the public in December, and CF Industries Holdings Inc. (CF), North America’s largest maker of nitrogen-based fertilizer, lost at least 2.2 percent after the companies were downgraded.
The S&P 500 fell 0.3 percent to 1,366.21 at 9:44 a.m. New York time, declining for a second day. The Dow Jones Industrial Average slid 26.26 points, or 0.2 percent, to 12,951.31. About 403 million shares changed hands on U.S. exchanges.
“It’s just not an environment that we feel like sticking our neck out to take on a lot of risk,” said Michael Mullaney, who helps manage $9.5 billion at Fiduciary Trust in Boston. “We’ve been scratching our heads a little bit after the big run-up in equities. We just don’t see a strong enough global economic background to support where prices are right now.”
Benchmark gauges joined a global slump as China pared its growth target to 7.5 percent from an 8 percent goal in place since 2005. Euro-area services output shrank more than estimated in February, led by Italy and Spain. In the U.S., the Institute for Supply Management’s gauge of non-manufacturing companies eased in February, according to a Bloomberg survey.
Stocks rose last week as data on housing and jobs improved. The S&P 500 fell on March 2 amid concern that a rally to the highest level since 2008 has outpaced growth prospects. It trades at 14.1 times reported earnings, the highest since August while still below the average since 1954 of 16.4 times.
Zynga (ZNGA) slipped 3.9 percent to $14.12. The biggest developer of games for social-networking sites was cut to neutral from overweight by JPMorgan, meaning the shares are expected to perform in line with the stocks the analyst covers over the next six-to-12 months. JPMorgan cited Zynga’s rally since the end of January.
Pandora Media Inc. (P) rose 1.3 percent to $14.08. The online music service provider was upgraded to buy from hold at Stifel Nicolaus & Co., which cited the expansion of the company’s advertising sales staff.
Tiffany & Co. (TIF) gained 1.1 percent to $68.23. The company’s flagship Paris store in the city’s fashion district was put on the market for more than 30 million euros ($40 million), according to CBRE Group Inc., the broker handling the sale.
Corporate profits that doubled since 2009 have left the S&P 500 cheaper than at all 34 peaks since 1989, even as options traders push the cost of protecting against losses to the highest in four years.
The S&P 500 advanced 102 percent since March 2009 to an almost four-year high last week, data compiled by Bloomberg show. Valuations are lower than at every 52-week peak since 1989. Traders have pushed the price of contracts that pay should the S&P 500 (SPX) drop 20 percent to the most since 2007 compared with ones betting on a rally of the same size.
Rising oil prices and concern European leaders have yet to contain the credit crisis are keeping investors from paying more for profits, which are projected to reach annual records through 2013.
Bears vs Bulls
Bears say equities aren’t cheap because the profit estimates are too optimistic. Bulls say shrinking price-earnings ratios provide a margin of safety should gains in the U.S. economy fail to match forecasts.
“Stocks have just gotten too cheap,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, said in a telephone interview. His firm oversees $160 billion. “We were worrying about a Chinese hard landing that didn’t happen. We worried about a U.S. double dip and that didn’t happen. We worried about Europe disintegrating, that didn’t happen. The worst risks have passed.”
BP Case Shifts to Criminal and Pollution Fines
China UST holding drop to 54 pc of its total
China Hedging Bets on UST Data Shows-LA Times
Bad Move-Lack of AAA Balloons UST holding TO 5 trillion
EPA Sponsors Zionist (Dr Suess), Watermelon Cult Film Lorax
Advertisers like Audi clean up. As does Zionist run Universal. Nice to see American taxpayer dollars go to float EPA lies. Abolish the EPA this is proof it is a Zionist propaganda outfit.
Deepwater Gulf Drilling Starting to Open up
Deadly Storms Wreck Havoc Upon South/Midwest
Politically Correct, Poorly Designed GM Volt Dying on the Vine